Delaware Valley Goods Movement Task Force Delaware Valley Regional Planning Commission
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1 Delaware Valley Goods Movement Task Force Delaware Valley Regional Planning Commission January 2004 William DeWitt, Ph.D. Teaching Professor University of Maryland
2 Research and Career Transportation South Shore Railroad, Indiana US Navy (Reserve) MBA, Transportation & Logistics, University of Tennessee Burlington Northern Railroad Operations; Strategic Planning; VP Marketing & Sales (Intermodal; Automotive & Machinery; Forest Products) Ph.D. Transportation & Logistics, University of Tennessee Smith School of Business, University of Maryland Transportation Courses; International Trips Intermodal Freight Transportation, 5 th Edition (co-author with Gerhardt Muller, US Merchant Marine Academy)
3 Cut Flowers Imported from Chile (7.1 million stems) The Central Region Fertile Land: The Central region encompasses the country s vineyards and land used to grow flowers and fruit. Economic & Cultural Hub: Santiago, Valparaiso, Concepcion Top Imported Flowers Lilies 5 million Tulips 2 million La Moneda Palace
4 So Now What do the Netherlands, Panama, Chile and Miami Have to Do With Flowers for Mother s Day?...
5 Supply Flow Networks "Earth to Earth Flows With Value-Added Processes" (c) William DeWitt, Ph.D. - November 2000 $ Distribution Recycle Return Repair Transportation Industry/Business Consumer Personal Auto Retail From the Earth- Plants or Minerals Transportation "From the Earth" - Mining or Harvesting; Limited options; Few ubiquitous "Semi-Processed" - Generally near mining or harvesting; Conversion to usable form or structure "Manufacturing" - Final Product or Parts & Components; Driven by weight, labor, capital and final markets "Assembly" - Final Product; Growing high flexibility with IT and postponement; generally near consumption "Warehousing" - Move to staging and cross-dock from storage Semi-Processed KEY Transportation Traditional Logistics Supply Flow Distribution Manufacturing Final Product or Parts/Components Transportation Assembly Network Options Distribution Warehousing Transportation
6 Significance of Supply Flow Networks Raw Materials sourcing is fixed and limited in scope for most materials; Related weight/bulk shedding semiprocessing is similarly limited Manufacturing, Assembly and Warehousing are valueadded exercises; CAD/CAM and postponement making them more variable in the flow As Channels of Distribution change, i.e., wholesalers, jobbers, distributors, retailers, driven by ecommerce, transportation requirements change dramatically Consumption is relatively fixed, but growing
7 International Business Human Resource Management Accounting VISIO CORPORATION Marketing $ Finance Supply Chain Management (Global) These Disciplines Provide the Framework For Logistics Decision and Information Sciences Logistics (Flows of Materials & Goods, Cash, Information, and Service) Operations & Quality Management General Business and Marketing Transportation Inventory
8 Transportation Processes Exception? - Truckload & Unit Train Gathering & Distribution Gathering & Distribution Gathering & Distribution Gathering & Distribution Gathering & Distribution Sorting/ Classifying Terminal Linehaul (Terminal to Terminal) Sorting/ Classifying Terminal Gathering & Distribution Gathering & Distribution Gathering & Distribution Gathering & Distribution Gathering & Distribution Exception? - Truckload & Unit Train Freight Transportation Few, if any materials, parts, or products move directly by a single mode of transportation from source to destination. Freight Transportation - the carrying of materials or goods from one point to another utilizing mechanical, electrical or animal muscle of some type. This definition would not only include conventional modes, but also materials handling capabilities such as conveyor belts, augers, clam shells, forklifts, people, etc.
9 Changing Role for Transportation in Supply Chains/Supply Flow Networks Integral and Essential Link for Global Supply Networks (Sine Qua Non) Major Cost of Logistics 40 to 60% Increased Sourcing and Market Distance Mean Increased Transportation (Offset by Regional Trading Areas NAFTA, EU, MERCOSUR, ASEAN?) Increased Information and Communications Systems for Transportation and Logistics (Netcentricity in the Digital Economy) Inventory Role from Replenishment to Primary, Static to Dynamic Growing Transportation Complexity/Options and Trade-offs (Customization and Multimodal) Increased Speed of Transportation Process and Systems Linehaul Capacity and Urban Congestion + Residential Patterns Transportation Moving From Commodity to Differentiator
10 16 14 ($/item) 12 COSTS In-Transit Inventory 0 Logistics Logistics Cost Cost Components Components as as a a Function Function of of Shipment Shipment Size Size Total logistics costs Total inventory costs Cycle inventory costs Transportation costs Shipment Size (items/shipment) 6 8 Logistics Can Be Measured! Transportation Costs Cycle Inventory Costs In Transit Inventory Costs Safety Stock Costs Other Costs Total Logistics Cost
11 ShipSmart Total Logistics Costs Model
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13
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15 Logistics Zone of Negotiation Shipper-Carrier Interface
16 Some Observations From Career and Research
17
18 Inland Waterway Freight Flows FHWA Office of Freight Management and Operations, USDOT
19 Cargolifter CL 160 Lift Capacity 160 metric tons Range 10,000 km Terminal Load/unload at 100 m Carrying Platform 50m x 8m x 8m Speed 90 km/h
20 Hong Kong Conventional, River Terminal (Pearl River Delta), and Mid-Stream
21 Duisburg, Germany (World s Largest Inland Port-Rhine River)
22 Five Vessels in Rotterdam on the Screen and on the Water
23 And Delta Terminal at Rotterdam Has Automated Guided Vehicles to Move the Containers Three People to Load a Vessel A Crane Operator, A Checker (OCR issue), and a Person on Board to Lash the Containers
24 Vessels Big & Small Short Sea Vessel TEUs Post-Panamax Vessel 6,000 TEUs 17 Containers Wide
25 Container Ship-in-a-Slip Concept High Speed Ships Knots FastShip Incorporated (FSI)
26 Air Boeing F 248,300-pound (112,627 kg) payload 5,010-mile (8,060 km) range additional 520 nm or 22,000 lbs Airbus passengers - 8, 150 nm (15,100 km) Freighter 300,000 lb - 5,650 nm (10,410 km) Boeing SonicCruiser Mach 0.95 or faster - save about one hour for every 3,000 miles flown Range about 9,000 nautical miles (16,668 km)
27 3PL Carrier Options List Carriers By Mode Mode % Truckload % Flatbed % LTL % Refer 110 7% IM 61 4% Cartage 46 3% Air 28 2% Sm Pack 26 2% Bulk 26 2% DDS 24 2% Warehouse 18 1% Rail 12 1% Pool 8 1% Vessel 8 1% B Bulk 4 0% Lumper 1 0% 1559
28 Iowa Modal Comparison Chart
29 GIS Layers
30
31 Overlap Big B
32 Combined System 4000 Stores 23 States 9 DC s
33 Major Industry Players
34 Mergers?
35 Unit Coal Train 35
36 Double-Stack vs. Conventional Flatcars
37
38
39
40 Double-stack and RoadRailer
41 RoRo Ships
42 TOP 15 CONTAINER CARRIERS RANKED BY OPERATING CAPACITY RANK CARRIER COUNTRY % 2001 TEU TEU 2002/ #. OF OWNED #OF CHARTER CAPACITY CAPACITY 2001 SHIPS SHIPS 1 Maersk Sealand Denmark 754, ,459 14% P&O Nedlloyd UK/Netherlands 414, ,088 5% Evergreen Taiwan 401, ,006 7% MSC Switzland 391, ,938 55% Hanjin South Korea 315, ,715-1% APL Singapore 255, ,455 5% n/a 0 7 Cosco China 236, ,936 5% CMA CGM France 208, ,660 38% MOL Japan 202, ,221 26% NYK Japan 179, ,481 19% "K" Line Japan 171, ,497 25% Zim Israel 170, ,460 17% CP Ships UK 164, ,700-4% OOCL Hong Kong 158, ,541 11% China Shipping Cntr Lines China 144, ,000 15% n/a 0 total 4,170,578 3,658,157 16% average 278, ,877 16% From: American Shippers, October 2002
43 Swapbodies Source: Balt Containers
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